Canada
August 20, 2026
US, Canada trade deal could see steel tariffs halved: Report
Written by Laura Miller
A trade deal between the US and Canada is reportedly pending that could halve Canada’s Section 232 steel tariffs.
Bloomberg reported Wednesday that the tentative trade pact would lower tariffs on some steel and aluminum products from 50% to 25%. A decrease from 25% to 15% would apply to tariffs on automobiles, according to Bloomberg.
Anonymous sources familiar with the matter told the news agency that details are still being hashed out, but the tariff reductions are not expected to apply across the board.
The deal is a response to President Trump’s threat to impose new Section 338 tariffs on certain imports from Canada totaling nearly $30 billion. The tariffs were supposed to take effect Wednesday, but the president paused them to give trade officials more time to reach a deal.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three-day period, based on the fact that Canada and the USA, subject to the finalization of documents, have a DEAL!” the president said in a Truth Social post on Tuesday.
In the same post, Trump teased the revival of the Keystone XL Pipeline. It “may be awoken from the grave!” he exclaimed.
Canadian Prime Minister Mark Carney said in a statement on Tuesday that “Substantial progress has been made, although there is important work still to be done.” Midday Wednesday, he said they continue to move toward an agreement.
No formal announcement had been made as of this story’s publication.
Canadian officials hope to complete the deal by Friday, CBC reported.
A well-placed source in Washington, D.C. told SMU that Bloomberg’s reporting on the matter is “directionally accurate” but “things are still a little fluid.” They said a minimum 25% tariff on steel and aluminum is likely, but “it’s more complicated than just that.” The source pointed to quotas as another probable part of the trade deal.
“The quota I hear … is not going back to the old days, let’s put it that way,” commented an industry source. “It’s a reasonable volume.”
International trade attorney Lewis Leibowitz said a deal is very likely as both the US and Canada want to get it done. However, he expects much harping from the domestic steel industry should the tariffs be reduced.
No doubt this trade deal will be a major topic of discussion at next week’s SMU Steel Summit. Join us in Atlanta to be a part of the conversation. You can find more information and register here.
